Forex – Dollar Slips Lower, Euro Higher as Italy Eyed

Investing.com – The dollar slipped lower against a currency basket on Monday, while the euro pushed higher even as Italy prepared to see its proposed budget for 2019 rejected by the European Union for breaching borrowing targets.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.10% to 95.28 by 03:50 AM ET (07:50 AM GMT).

Market sentiment was boosted after Chinese stocks staged the strongest rally in three years overnight after the government pledged to support the economy, which has been hit by the trade war between Washington and Beijing.

But investors remained wary amid an ongoing row between Italy’s government and the EU over Rome’s 2019 draft budget, which the European Commission has slammed as an unprecedented breach of EU fiscal rules.